Tensions between municipal reform and outdated fiscal levers in rural British Columbia.

Debates about the future of small municipalities in Canada are set against a backdrop of economic, political, and social restructuring processes that have displaced former state investment policies in favour of neoliberal public policy approaches. Small municipalities struggle with outdated financial and governance structures and a provincial public policy agenda that asks them to become more creative, innovative, and "entrepreneurial" in their approach and responsibilities. Drawing upon key informant interviews with eight case studies in British Columbia, Canada, this research examines the tensions between municipal reforms mandated by the provincial government over the past 30 years and commensurate fiscal levers and capacities in place to address these broadening responsibilities for small municipalities in volatile staples‐dependent regions. Our findings demonstrate how successive provincial governments have mobilized New Public Management objectives through a host of legislative and regulatory changes that have increased the responsibilities and requirements on local governments without commensurate fiscal or jurisdictional capacity. Key Messages: Municipal reforms are mobilized through legislative changes, planning and regulatory requirements, partnership and program requirements, and restrictive fiscal levers.Reform pressures are exacerbated by the limited staff capacity and expertise at the municipal level to implement new measures.Outdated funding powers and mechanisms for municipalities limit the capacity of small municipalities to support long‐term planning and infrastructure investments. [ABSTRACT FROM AUTHOR]